The Security Council unanimously passed a resolution, which "condemns the launch and reiterates the Security Council's previous demands that North Korea abandon its nuclear weapons program and not proceed with further launches".

According to the resolution, the UN will also initiate "significant action" if Pyongyang presses ahead with third nuclear test. North Korea's space agency will face sanctions, along with a raft of trading companies.

Alongside the sanctions at UN level, America is pondering its own action in tandem with South Korea, which maintains tense relations with its northern neighbour.

"We have been in discussion with the US side about additional bilateral sanctions against the North following the UN resolution," a senior unnamed diplomat from Seoul told the Yonhap news agency.

North Korea insists its recently launched rocket was designed to put a communications satellite in space. However a number of international powers, including the US, have suggested the launch is a disguise to test long-range missile technology.